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BAH Calculator

BAH Calculator

Calculate Basic Allowance for Housing (BAH) for US military personnel. Get accurate rates based on rank, location, and dependent status with historical comparisons.

100% FreeOfficial Rates2023-2026 Data
BAH Calculator
Enter your military information to calculate Basic Allowance for Housing

Enter any US city, state, or ZIP code

Spouse and/or children eligible for benefits

Example BAH Amounts
Sample calculations for different ranks and locations
E-5
Location: San Diego, CA
Dependents: With
Monthly BAH: $3,225
O-3
Location: Norfolk, VA
Dependents: With
Monthly BAH: $3,630
E-7
Location: Colorado Springs, CO
Dependents: Without
Monthly BAH: $2,430
O-4
Location: Washington, DC
Dependents: With
Monthly BAH: $5,063
What is BAH?

Basic Allowance for Housing (BAH) is a non-taxable monthly allowance paid to military members who don't live in government quarters.

Key Features:

  • Tax-free: BAH is not subject to federal income tax
  • Location-based: Rates vary by duty station
  • Rank-dependent: Higher ranks receive higher rates
  • Dependent status: Additional amount for families
  • Annual updates: Rates typically increase yearly

Note: BAH rates are based on local housing costs and are designed to cover 100% of median housing costs in each area.

BAH Planning Tips

Financial Planning

  • BAH continues during leave and temporary duty
  • Consider living below BAH to save money
  • Factor in utilities if not included in rent
  • Remember BAH is tax-free income

Housing Options

  • On-base housing (no BAH, utilities included)
  • Off-base rental (receive full BAH)
  • Home purchase (receive full BAH)
  • Shared housing to reduce costs

Family Considerations

  • Dependent rate applies with spouse or children
  • Geographic separation may affect BAH
  • Consider school districts for children
  • Dual military couples receive separate BAH
The BAH Gap: Why Your Allowance May Not Cover Rent

BAH is designed to cover the median housing cost in a Military Housing Area (MHA), but the methodology has a built-in gap. The Department of Defense surveys local rental markets and sets rates to cover rent, utilities, and renter's insurance — for the median, not the average. In high-cost or rapidly appreciating markets, many service members discover their BAH falls short.

How DoD Calculates BAH

The formula targets the 50th percentile of housing costs within each MHA:

BAH=Median rent+Avg. utilities+Renter’s insurance\text{BAH} = \text{Median rent} + \text{Avg. utilities} + \text{Renter's insurance}Out-of-pocket cost=Actual rentBAH\text{Out-of-pocket cost} = \text{Actual rent} - \text{BAH}

By definition, roughly half of available rentals exceed what BAH covers. Service members competing for limited housing near base often pay above median rates.

Real-World Example: San Diego

E-5 with dependents BAH (2025)~$3,000/mo
Median 2-bedroom rent (San Diego)~$3,350/mo
Monthly shortfall−$350/mo

This $4,200 annual shortfall comes out of the service member's base pay — effectively reducing their real compensation at high-cost duty stations.

Tax advantage reminder: BAH is non-taxable, which makes it worth more than equivalent salary. An E-5 receiving $3,000/month in BAH would need roughly $3,600–$3,900 in taxable income to match the same purchasing power, depending on state taxes and filing status.

Frequently Asked Questions

BAH is a U.S. military benefit that helps service members pay for housing costs when government quarters aren't available. The amount varies by location, pay grade, and dependent status, based on local rental market data.
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BAH Calculator 2025-2026 - Calculate Basic Allowance for Housing for Military | MathIsimple